Transforming HR Compliance: Systems and Service

turning knob to option automatic to indicate compliance automation

Leveraging outsourcing, automation and process optimization to boost your HR compliance ROI.

The world of work is changing rapidly, and companies are struggling to keep up. With so much changing so quickly, it's no wonder that, according to a 2020 survey conducted by the ADP Research Institute, 40% of all business owners surveyed indicated that they had experienced unintended expenses as a result of non-compliance with government regulation.

Here's the good news: despite increasing complexity, companies that embrace technology and adopt best practices not only stay ahead of the curve in terms of managing compliance risk, but they can also significantly reduce operational costs and improve overall business efficiency and effectiveness.

The following are ways to use outsourcing and process optimization to transform HR compliance from a cost center to a strategic asset.

Systems and service: The next layer of operational efficiency

According to a study by CFO Research & ADP*, in a typical organization, there are more than 250 manual tasks to be completed outside the human capital management (HCM) system to maintain compliance with various HCM-related regulations. While many routine processes are great candidates for automation, there remain many event-driven tasks that can over burden HR staff members and distract them from their core mission.

These tasks may be great candidates for outsourcing as well, including:

  • Maintaining banking interfaces
  • Maintaining disaster recovery
  • Record retention and storage
  • Managing security
  • Purchasing and maintaining equipment
  • Maintaining supplies/inventory

Outsourcing and identifying ways to optimize these tasks can lead to further cost reductions, in addition to potential reductions in banking fees, hosting fees, and third-party support fees.

Opportunities for automation throughout your compliance processes

Complying with employment-related laws and regulations in today's dynamic compliance environment requires companies to execute processes with many steps that involve participants from numerous departments. Without structured workflows and integrated quality assurance steps, employers face an uphill struggle to effectively maintain compliance without facing a heavy burden of cost, risk, and inefficiency.

Optimizing HR compliance efforts can lower costs, reduce unnecessary overhead, reduce risk, and position companies for both compliance and growth. Leveraging workflows with regulatory requirements integrated into the process saves time, reduces steps, and automatically flag inconsistencies. As a result, HR staff members can concentrate on more strategic work – which may go beyond cost savings to positively impact employee morale and engagement.

Learn how HR process improvement can elevate your operations -- download the Transforming HR Compliance guide. This interactive resource provides personalized insights into your organization's potential savings based on your company size.

Other articles in this series:

*CFO Research & ADP, Intelligent Compliance for Human Capital Management, Getting Better at Getting Work Done, December 2014.